The big banks and high-volume originators are still stinging from the sub-prime crisis. 

If you can make your mortgage payments, be glad you are not in financial crisis... or ruin.

I seem to remember reading they may have passed some legislation to at least temporarily keep people from getting 1099s for income on foreclosures during this "crisis."

It could be medical bills that are hurting her score or perhaps she had a financial crisis years ago that she has recovered from.

In the letter I would also memorialize the dates and times you have previously spoken about this issue to her.This is a very direct way of handling this, but it sounds like your patience is gone and diplomatic means have not yielded satisfactory results.Also, a nice load of gravel that gets delivered and dumped right behind her car whilst parked there might also make a fun story to tell at parties...

In 2008 they were in a cash crisis and had a ton of non performing loans they had to move off the books.

During such a crisis, I knew I'd have to choose a tenant who had an essential career to ensure that rent would be paid each month.

The rent is $1,000 per month, The barber shop is on a one year lease, and I doubt it will survive the Covid crisis since they still hadn't opened their doors prior to the shut-down.

I want to enter the RE game very soon because during the 2008 crisis, many millionaires were made, and I don’t want to miss out during the worst one since the Great Depression.

I totally see the problem with cash out because the lenders are afraid of future declining values and so they don't want upside down mortgage in case the value plummets due to financial crisis.